Diversified Healthcare Trust and Five Star Senior Living Inc. finalized the restructuring of their business arrangements.

The healthcare real estate investment trust, formerly known as Senior Housing Properties Trust, terminated the five existing master leases for 166 of its senior living communities that were leased to Five Star, as well as the existing management and pooling agreements for an additional 77 of the REIT's senior living communities. The parties signed new management agreements for all 243 properties owned by the REIT that are operated by Five Star.

As part of the restructuring, Five Star issued 10,268,158 common shares to the REIT and a total of about 16,119,560 common shares to the latter's shareholders of record as of Dec. 13, 2019. Diversified Healthcare paid or assumed $75 million of Five Star's working capital liabilities.

The two companies are managed by The RMR Group Inc. unit The RMR Group LLC.